Bogus loans

Bogus loan companies and fake credit brokers often target those with poor credit ratings. People who apply for the loan are told to pay an upfront fee. Once this fee has been paid, the promised loan never materialises and the fraudster keeps the cash and is never heard from again.

Report a loan fraud

Tips to protect yourself against loan scams

be on your guard and be suspicious if companies offer quick and easy cash regardless of credit history

avoid loan companies who cold-call you

do your homework on the company before agreeing to anything - some credit fraudsters quote the consumer credit licence numbers and company registration numbers of other lenders so if the details don't add up, don't make any payment

Loan sharks

A loan shark is someone who lends money to people without the required licence issued by the Financial Conduct Authority.

information such as trading names and the activities for which a business is licensed

If a lender isn't listed as having a current credit licence, don’t borrow money from them.

Payday loans

Payday loans are small sums of money paid over a short period of time and are available from high street shops and internet sites. Lenders usually hold a Consumer Credit Licence but charge very high interest rates.